JM Tax Gain Fund Payout of Income Distribution cum capital withdrawal INF192K01643

JM ELSS Tax Saver Fund earns an Above Average Process Pillar rating.

The most significant contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 63%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Excellent risk-adjusted performance also contributes to the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. However, the process is limited by the parent firm's five-year retention rate of 67%, which raises concerns about long-term strategic consistency..

This strategy skews toward smaller, higher-growth companies than its average peer in the ELSS (Tax Savings) Morningstar Category. Analyzing additional factors, this strategy has shown a tendency to hold fewer stocks with high dividend or buyback yields compared with Morningstar Category peers in recent years. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide steady income payments, they may cut payouts if their earnings fall. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy has also demonstrated more exposure to high-momentum stocks over peers in recent years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. This contributes to a higher-risk, higher-reward approach. In this month, the strategy also had more exposure to the Volatility factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in technology and basic materials relative to the category average by 6.0 and 3.4 percentage points, respectively. The sectors with low exposure compared with category peers are consumer defensive and utilities, underweight the average by 3.2 and 3.2 percentage points of assets, respectively. The portfolio is positioned across 50 holdings and its assets are more dispersed than peers in the category. In particular, 34.9% of the portfolio's assets are concentrated in the top 10 fund holdings, as opposed to the typical peer's 39.4%.